18 Apr 2007

Reserve Bank says Fiji must target 5% growth

9:38 am on 18 April 2007

The Reserve Bank of Fiji says the country must target faster economic growth of at least 5-percent.

The RBF's governor, Savenaca Narube, says such a target would be better than the 2-percent growth projected for 2008 and 2009.

He says the economy is expected to drop by 2-point-5 percent this year because tourism still gives mixed signals, gold mining has stopped, there are possible trade union sanctions and the uncertainty about the European's Union's financial support for sugar reforms.

The Fiji Times quotes Mr Narube as saying the potential for Fiji to recover next year is good, but it largely depends on accelerating reforms.

Mr Narube says the Bank has not pursued aggressive tightening of monetary policy because it would have discouraged growth.